Question
I need help with calculations for Jon and Billy's basis in Bizrate's stock only? The information for you is = Bizrate basis in the new
I need help with calculations for Jon and Billy's basis in Bizrate's stock only? The information for you is = Bizrate basis in the new assets it holds. Depreciation will be a given number.Based on theprepare the 2018 Form 1120 for Bizrate Electronics with the accompanying Schedule D, 1125-A, 1125-E, and Form 4797. Bizrate Electronics was organized on February 22, 2018, by Jon Jones and Billy Burt. Jon contributed $270,000 cash and SBUX stock (acquired 01/01/2017) worth $30,000 for 60% of Bizrate stock, while Billy contributed $200,000 cash for 40% of the stock. Jon's social security number is 123-45-6789 and Billy's is 987-65-4321. Bizrate's employer ID number is 12-3456789. Bizrate began business on March 1, 2018. Bizrate is a retail electronics outlet located at 118812 Josey Lane, Louisville, KY 40018. Bizrate uses the accrual method of accounting, the first-in, first-out (FIFO) inventory method, and a calendar year.
Bizrate's 2018 income statement, balance sheet, and statement of changes in retained earnings are on the following pages.
This is the information for project
Assets
Cash
113,000
Accounts Receivable
300,000
Less Allowance for Bad Debts
29,000
271,000
Inventory
1,700,000
Tax Exempt Securities
17,000
Other Current Assets
40,000
Other Investments
85,000
Buildings and Depreciable Assets (net)
165,400
Land
70,000
Total Assets
2,461,400
Liabilities and Equity
Accounts Payable
375,000
Mortgages, Notes Payable in < 1 year
185,000
Other Current Liabilities
70,000
Mortgages, Notes Payable in > 1 year
1,190,000
Capital Stock
500,000
Retained Earnings
141,400
Total Liabilities and Equity
2,461,400
Bizrate Electronics, Inc.
Statement of Changes in Retained Earnings
For the Year Ended December 31, 2018
Beginning Balance
0
Income
381,400
Distributions
(240,000)
Balance, December 31, 2018
141,400
Other Information
Addresses for the owners are:
Jon Jones, 3513 Jackson Street, Louisville, KY 40018
Billy Burt, 2532 Sugarbush, Louisville, KY 40018
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